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sazsag
New Member

How do I report pension income paid for restitution?

My sister signed her pension over towards her federal restitution.  How do I reflect that on her taxes?

1 Best answer

Accepted Solutions
MaryK1
Level 9

How do I report pension income paid for restitution?

She should receive a 1099-R for the pension which is reported as income.  There are no tax deductions for federal restitution.

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4 Replies
MaryK1
Level 9

How do I report pension income paid for restitution?

She should receive a 1099-R for the pension which is reported as income.  There are no tax deductions for federal restitution.

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sazsag
New Member

How do I report pension income paid for restitution?

She did receive a 1099-R and taxes were taken out.  Is there an exemption for early withdrawal to pay this?
MaryK1
Level 9

How do I report pension income paid for restitution?

Yes, unfortunately, she will probably have to pay the penalty because it does not fit into an exception.  Was she forced to get the money from the pension?
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sazsag
New Member

How do I report pension income paid for restitution?

It was her decision to take her pension and apply it towards the restitution.

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